Auctions - why bid early?

Another theory I have about this is that it's kind of like bluffing with poker. If somebody sees something (this is more applicable to Ebay than the 'gon, but anyway) they want, they may be reluctant to bid on it if there's already a bid, 'cause who knows how much that person bid already? Sometimes I bid on something (Ebay) with basically a low bid, but a little higher than the opening bid, so if somebody else comes along and bids, they get the "you've been outbid" message, and think (in my little fantasy world) "wow, this guy must have put down a huge bid, there's no point in going up against him!" Of course, if I'm really obsessed I'll hang out and snipe it anyway, and that's happened to me too. So I don't know if bluffing really works...I just know I buy too much stuff online :)

Ok-- I'll try a different aproach. You bid what you want to get the item for.--So all the +$50 bids are met with "you have been out-bid". Even if you have over-bid, the selling price should be held back to the last $50 dollar increment bid by the second highest bidder--you get it for 50bucks over the second highest bid.

The times that I will bid early is only to clear out the non serious bidders - I want to get it over a certain amount to test the waters and see who stays in the game. Kinda like poker, I guess, huh?
I then sit back and wait. I usually will not enter my final bid until the end and hope my proxy kicks butt. I have been beat too many time when bidding too early.

megasam, why would red flags go up? I have relisted items when my reserve price was not met. Is that what you mean?

-aj

There is a reason no one else has mentioned. When an item is obviously being auction by a private individual (Not an antique dealer) and is extremely under it's value I'll place a bid just to keep a dealer from taking advantage of the uninformed. A good example would be someone selling their Dad's collection, or stereo after he has passed on.